MCX Gold futures opened sharply higher, factoring in the late surge in the New York floor trades. The commodity witnessed a highly volatile session yesterday but recorded a sharp upward skid in the New York trades after the dollar nose-dived near 1.3200 levels against the Euro. Gold has been seen displaying a direct correlation with the dollar off late but rose in the line with the conventional price drivers yesterday as the Euro gained and economic activity looked set to face headwinds.
Federal Reserve Chairman Ben Bernanke stated yesterday that though the conditions have become less supportive of economic growth in recent months, the US economy should still expand at a moderate pace, according to media reports. The US still has a considerable way to go before a full recovery is achieved, Bernanke said.
Gold fell near $1175 per ounce in London before it rose to $1190 in early New York trade and then fell back again under $1180. Prices bounced back in the last hour of trade and ended with a nominal gain to at $1185.40 per ounce. The counter moved to a high of $1186.80 in early moves and currently quotes almost unchanged.
MCX Gold futures for October fell under Rs 17900 per 10 grams and witnessed a good rebound to see prices edging as high of Rs 17985 per 10 grams. However, a sharp sell off yet again took the prices under Rs 17900 and the counter closed at Rs 17862, down Rs 75 on the day. The countered opened at Rs 17907 per 10 grams and rose to Rs 17935 per 10 grams quite quickly. The counter currently trades at Rs 17925, up Rs 63 or 0.35% on the day. COMEX Gold quotes at $1184.60, down 80 cents on the day. Dollar is appreciating after falling to a low of near 1.3200 and we may expect Gold to stay supported in $1180 holds up.
